December 14

1) Steps to be taken by govt after Demonetisation:

  • Govt is taking the burden of all transactions fee cost that is applied to the Public sector Firms
    • The transaction fee should be absorbed through ‘Pay Gov India’
    • A new expenditure head is being created to deal with this
  • Non tax receipt portal (bharakosh.gov.in)
    • It enable users to make non tax payments to the govt like Spectrum charges, RTI application fee etc.,
  • Mini ATMs/PoS machines for fair shops to undertake digital payments
  • A standardised, interoperable, multi-purpose, multimodal National Common Mobility Card is being developed for Smart cities. It is ready for testing on pilot basis

2) New model Bilateral Investment Treaties (BITs) :

  • This model has given more importance to host state’s regulatory powers than the protection to the foreign investors
  • Recently India has cancelled Bits with many countries to promote new model
  • Impacts:
    • It will send a wrong signal to the effective investors who play a major role in promoting the ‘Make in India’ initiative
    • Investors should completely depend on state laws and regulations apart from relying on international arbitration earlier
    • Keeping the Indian investors in abroad on risk
  • Suggestions:
    • Speedy judicial trails
    • Make a balanced importance to both host state’s regulations and investor protection

3) Increase in Import Duty on Wheat:

  • It is to avoid competition from international market to local farmers
  • In recent days due to lower price of wheat in international markets than the Minimum Support Price in India dumping of wheat is taking place
  • Caution:
    • Due to warmer winter the production rate of wheat may come down which will bring the inflation

4) IBSA (India-Brazil-South Africa)

  • 6th Summit will take place in the coming year in India
  • India is planning for Preferential Trade Agreement (PTA) with the trade blocs of the respective countries i.e., MERCOSUR (a trading bloc or custom union in LAtin America where Brazil is a member) and Southern African Customs Union (SACU), which includes South Africa
  • Suggestion:
    • If India Promotes its CEPA to these two trade blocs, which are already a trading partners with each other can improve intra IBSA trade and investment ties
  • IBSA Fund:
    • Annual contribution $1million, which is used to assist projects of social development especially in least developed countries.
    • It is managed by UN office of South-South cooperation in UNDP
      • Suggestion:
        • Instead of maintaining that fund with UN body it’s better to be maintained by the combined body of these three countries.
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